The Chinese market for new passenger vehicles expanded for the third-straight month in August in an extended rebound, the China Automobile Dealers Association said Thursday.
Last month, retail sales of new sedans, crossovers, SUVs and multi-purpose vehicles industrywide jumped 29 percent year on year to top 1.87 million, according to the trade group’s tally.
The extended market rally came after the lifting of a two-month pandemic-triggered lockdown on Shanghai — China’s financial center and industrial hub, and the roll-out of a six-month tax incentive for gasoline vehicles on June 1.
Under the tax incentive program, purchase tax was halved to 5 percent for new light vehicles with engine sizes of up to 2.0 liters and priced at 300,000 yuan ($43,103) or below.
The market rebound also came as a result of explosive demand for electrified vehicles.
In August, the retail volume of new electrified passenger vehicles spiked 111 percent year on year to some 529,000.
The tally includes around 397,000 full electric vehicles and 132,000 plug-in hybrids, a 99 percent jump and 158 percent from a year earlier.
As of August, retail sales of new electrified passenger vehicles surged 120 percent to approach 3.26 million.
The volume consists of roughly 2.5 million EVs and 758,000 plug-in hybrids, advancing 106 percent and 184 percent from the same period last year.
Thanks to the tax incentive for gasoline cars and robust demand for electrified vehicles, retail sales of new passenger vehicles industrywide edged up 0.1 percent year on year in the first eight months, according to the CADA’s tally.